JLL’s Craig Killman, West Coast retail lead, sat down with GlobeSt.com to discuss how several of our west coast markets compare to other core US markets. Killman says San Diego, West Orange County, West Los Angeles (mid-Wilshire to downtown) and the Bay Area are as strong as any other core market in the country, but as with any trade area, it can be a tale of two cities.
In an exclusive Q&A, Killman takes a closer look at Los Angeles and San Francisco’s booming retail corridors and discusses what retail property types investors are seeking, the local economic forces that could potentially impact retail, new retail concepts infiltrating the market, and if these markets will continue to grow in 2015.
In Los Angeles, the two most sought after retail property types are specialty food-anchored neighborhood centers and high street retail, while in San Francisco mixed use in the urban core is the most sought after.
With economic forces such as the cost of living in California continuing to outpace the rate of inflation and living expenses in the rest of the country, corporations, individuals and families will likely struggle to maintain their expendable income. For now, the high-end market is doing well, as is the bargain basement value sector in Los Angeles. Regarding the economic forces in San Francisco Killman says:
It comes down to two things: consumer confidence and disposable income. If the local economy is strong, like it currently is in San Francisco and the surrounding area, the effects of increased taxes are not felt as drastically as in slower economic areas.
One of the new retail concepts that is infiltrating the market is the incorporation of technology into bricks-and-mortar to further integrate digital with the physical spaces in stores. Killman states:
The retailers who take advantage of multi-channel selling, which includes bricks and mortar, digital and mobile, are the ones that are thriving.
As far as growth moving in to 2015 and beyond, Killman doesn’t see either slowing down anytime soon. Read full article here: LA, SF Lead California Retail Boom